European Metals Share Discussion Threads

[bookwormrobert] 22/1/2017 15:32

I didn't bring up Kodal on this thread - somebody else did. I just replied. And I stick by my opinion, which is that of a professional in this field. Hopefully, somebody will be grateful for the warning and get their money out in time.

[cpap man] 22/1/2017 15:21

Fine red tick me by all means but i am in EHM as well as KOD plus quite a few others. However whilst all sensible opinions should be welcomed i only ever want to read balanced views!

So bookwormrobert why are you attempting to knock KOD when it is a totally different play to EHM?

And why do it on the EHM thread? I for one just don't get it?

[bookwormrobert] 22/1/2017 15:03

This is from ShareProphets on Kodal:

The mere mention of lithium seems to be enough to send the share price soaring on many small AIM companies, until reality hits home and the almost inevitable pullback starts.

There is no doubt that demand for the metal has been on the rise, and that looks likely to continue going forwards, and prices have been increasing in recent years, but I suspect that in the majority of cases these lithium prospects which these small companies hold will never actually amount to anything.

It also seems to be the case that if a small AIM company secures an interest in any licence - even one where little or no exploration work has even been undertaken – that is anywhere near to an existing producing mine or similar then PIs immediately assume that it should be worth a similar amount, purely by dint of its geographical location.

The same goes for if a nearby acreage is sold, with some suggesting that implicitly means that the licence held by the company they are invested in should be worth a similar amount.

A good example of this at the moment seems to be Kodal Minerals (KOD) which has seen a crazy rise in its share price in recent weeks to the current level of around 0.515p to buy, and giving it a market cap of over £26 million. When the share price topped the 0.3p level the company even put out an RNS on January 13 noting the rise up to that point and stating that there was no reason for it – yet people have continued to pile in.

A lot of this seems to be off of the back of speculation surrounding its Bougouni lithium project in Mali, which is currently in the very early stages and it only acquired the 90% interest in the project at the end of August. This set the company back the huge sum of $140,000, which is payable over 3 years, with an initial payment of $25,000.

So far it is in the very early stages of exploration, having undertaken rock chip sampling and a 1.3km drilling programme, and whilst the results look interesting it is still in the very early stages.

But what really seemed to move the share price was speculation surrounding comments within an RNS on January 9 that announced that the company had raised £1 million by issuing over 666 million shares at a price of 0.15p to accelerate the development of Bougouni.

But within that the CEO Bernard Aylward mentioned a proposed sale of the neighbouring licence, owned by Birimian Limited, to a Chinese buyer for A$107.5 million. So far though that is only based upon a letter of intent, and the initial payment of A$10.75 million was supposed to have been made on or before January 20. There was no announcement on Friday on the ASX where Birimian is listed, so unless that comes on Monday it could well be that the deal isn’t going ahead.

Even if the deal is completed, there is no way that you can infer a value for Kodal’s project from that, as the Birimian licence had undergone extensive drilling and had JORC compliant resource figures, and was expected to be at the prefeasibility stage following the completion of the latest 10km drilling programme.

In most of the cases on AIM that I can recall where a crazy valuation is placed upon a licence, that is largely based upon the value of other projects nearby, it is ultimately never achieved or amounts to much.

There are plenty of small AIM companies with lithium acreage where exploration programmes have been carried out that are a good few years down the line and are no nearer to production or finding anyone who wants to buy the project.

It also isn’t cheap to carry out exploration work, especially when you consider that Kodal has a number of projects on the go already – although at least in the case of it gold interests in Cote d’Ivoire it has farm in partners. Newcrest is to spend $1.7 million oer the next three years to earn 75% of Dabakala, and Resolute will spend $3 million over 4 years across a number of licences to earn 75% of those.

In addition to the recently raised £1 million, the company also raised £750,000 in early October at 0.1p, and £680,000 in May, so it would seem likely that fundraising here is going to need to be a regular occurrence if the company is going to continue spending on exploration at the current rate, and with no source of revenue on the horizon either.

Given that the net assets of the company were valued at £1.5 million, and that since then there certainly hasn’t been anything close to justifying a valuation of almost £25 million more being placed upon them, then even allowing for the future potential of these assets you don’t get anywhere near to the current level of market cap being assigned to the company.

Like with so many AIM companies, you also have to wonder why, if these assets/licences are so fantastic, did a small outfit like Kodal manage to get its hands on them. Especially when you consider that Birimian, which owns the adjacent licence, had nearly A$8 million in the bank at the time and has a fair idea of the geology of the area from the work it has undertaken.

For anyone who took part in the placing the rise has been a very convenient opportunity to quickly sell for a nice profit, but ultimately I can’t see the share price managing to stay up at anywhere near these levels – it is just a case of when sentiment finally fizzles out, and once it does start to drop it will most likely retrace quickly. News is expected on the lab results from the Bougouni drilling towards the end of January, so the share price may find some support until then, but I can’t see anything being in there that would justify the level it is at – plus of course if the Birimian deal doesn’t go ahead then that would likely have a substantial affect, given it is what much of the recent ramping has been based upon.

I think you’d have to be mad to be buying the shares at anywhere close to this share price – especially after the ‘no reason for the rise’ RNS around 0.3p.

- See more at: hxxp://www.shareprophets.com/views/26687/kodal-minerals-is-overdue-a-big-drop-in-share-price#sthash.LHwgg5pO.dpuf

[cpap man] 22/1/2017 13:32

A shocking lack of research in POST 144 as KOD is NOT a bubble LITHIUM stock

KOD are still under valued and the CHINESE are indeed buying KOD

My thoughts on EHM remain unchanged for now although the LITHIUM price will no doubt be a lot higher by 2020

[bookwormrobert] 22/1/2017 11:21

Beware Kodal - bubble stock! (A lot of the US lithium stocks also have incredibly inflated prices, as well.)

[melody9999] 22/1/2017 09:28

Interesting action over at Kodal Minerals KOD just cos they think they have some lithium and that the Chinese are interested.

[wrtmf] 21/1/2017 16:32

informative article, thanks. some names to tuck away in memory bank - sonnen, powervault, moixa [alongside tesla].

[diesel] 21/1/2017 14:17

Miri, good points, progress to date is fairly ponderous, but the attractions for me are primarily geographic and secondly the other minerals within this explo area. I'm hopeful that this will be a takeover target from a major who wants to diversify from historic resources, coal, steel etc.

[miti 1000] 21/1/2017 11:36

Having had a good read up on this , I think the issue of undervaluation is cos EMH are at least 18 months behind BCN for example .

EMH's pfs due at least 1 year after BCN for example. Remember as well, BCN's FS will only come out in probably aug/sept of this year ...i.e a full 18months after their PFS (which incidentally, didn't rerate the share price at the time).

The ceo can wax lyrically about possible partner agreements etc after the PFS but reality is that no partner deals likely to be done till the FS which judging by BCN could be summer 2018.

Now , I've not got a clue whether, my post is accurate in comparing say EMH with BCN but I think EMH is a buy on weakness rather than strength throughout 2017 in the absence of a sector rerating (which actually could be very likely).

Comments welcome!!

[wrtmf] 20/1/2017 09:12

post 67. hope folks did a little reading around the other two, just because of the reach and spending power of the Chinese.

[myst1] 17/1/2017 12:19

Translated German article dated 16/1/17:

Http: //www.aktiencheck.de/exklusiv/A ...

Summary:

Our lithium-actuated European Metals Holdings Limited (SIN: AU000000EMH5, WKN: A14XRL, ticker: E861, ASX: EMH) is reporting first-class drilling results of up to 14,000ppm of lithium for Europe's largest lithium deposit. CEO Keith Coughlan is enthusiastic about the drill program that has just been completed and intends to present a substantial upgrade of the 6.46 million metric ton LCE (lithium carbonate equivalent) now already the largest lithium deposit on the European mainland. Immediately afterwards, a preliminary feasibility study will reveal the full potential of the massive under-rated lithium project. The largest lithium deposits in Europe, located directly on the German border, are already in the sights of the largest German car manufacturers BMW, Daimler and Volkswagen, which are now investing heavily in the booming market for electric cars. The market-listed competitors of our lithium-actuated European Metals Holdings Limited are up to 13 times higher. Bold and highly risky investors are looking forward to a stock of up to 314% with the lithium shares of European Metals Holdings Limited.

CEO Keith Coughlan is enthusiastic about the excellent drill results on Europe's largest lithium project. Up to 14,000ppm of lithium, the first two drill holes of the recently successfully completed drill program revealed more than 17 drill holes. Well CIW-23 scored a strong 261.1m with an average of 0.50% L2O and a section of 4m with 1.41% Li2O. Drill hole CIW-10 with a 223.9m section with 0.43% L2O also confirmed the high expectations in the largest lithium project. In the near future CEO Keith Coughlan wants to present a substantial upgrade of the resource estimate. The management expects again between 3.4 million and 5.3 million tonnes of LCE for Europe's largest lithium asset. We expect a fundamental re-evaluation of our lithium actuation tip by submitting the substantial resource upgrade at the latest.

CEO Keith Coughlan has also announced a preliminary feasibility study to be published soon. The provisional proof of the economic viability of Europe's largest lithium deposit is likely to become the game changer for our lithium-active ingredient. Lithium is in high demand in the booming electric car industry. The German cars BMW, Daimler and Volkswagen have to secure access to the strategically important energy metal in the long term in order to ensure their future viability. The assumption fancy should therefore also stimulate our lithium-Aktientip.

Our European lithium metal trading partner, European Metals Holdings Limited, has been massively undervalued compared to its stock-listed competitors. The company value of European Metals Holdings currently amounts to EUR 9.74 (USD 10.32) per ton of lithium carbonate equivalent. Lithium X Energy currently has a company value of EUR 37.7 (USD 40) per ton of lithium carbonate. This means that Lithium X Energy is about 4 times as high as our current lithium Aktientip European Metals Holdings Limited. Nemaska ​​Lithium has a stock market value of over 132 EUR (USD 140) per ton of lithium carbonate. The lithium shares of Nemaska ​​Lithium are thus rated more than 13 times as high as our lithium actu- al tip.

The car manufacturers Volkswagen, BMW and Daimler are also likely to have an eye on Europe's largest lithium deposit. Directly on the German-Czech border, in the heart of Europe, is a huge lithium precinct

[myst1] 17/1/2017 10:18

jamonit,

Tried and failed to post that link myself!

I think it is going to get exciting for holders over the next few weeks with the amount of news flow before the PFS. The interview states that news will be due in January and February. Hopefully by the PFS in April we will have made in roads on rectifying the disparity on the valuation compared to our peers!

[wrtmf] 16/1/2017 23:03

the drilling may have come in on budget, but by no stretch of the imagination did it come in on schedule,

'7500m, june to sept'

consequences for pfs >>> apr2017. the potential here is INDISPUTABLE, but they do need to sort their timelines out. [followed emh since autumn 2015.]

24june2015
'Having recently confirmed a Maiden Indicated Mineral Resource of 7.0Mt @ 0.23% Sn, 0.03% W and 0.21% Li at 0.1% Sn cut off grade, and obtaining excellent Scoping Study results over the past year, EMH is now going full-throttle to complete a Definitive Feasibility Study (DFS) at Cinovec.

The goal of the DFS will be to move a lot of that 5.5Mt Inferred resource into the Indicated status. With a lot of info already available on the project, including 80,000m of drilling, the Pre Feasibility Stage can be leap frogged, saving the company significant amounts of time in moving into production.

EMH has now made the decision to advance directly to a DFS with completion being earmarked for the 2nd half of 2016.'

[bookwormrobert] 16/1/2017 17:02

Why do I have the feeling that a placing is imminent after today's RNS and strange share price movements?

[goldfinger_1964] 16/1/2017 16:39

You may want to look into KENV

[bookwormrobert] 16/1/2017 09:05

Today's RNS isn't exactly earth-shattering - more of a routine update with more news to follow. But it's good news as far as it goes, so I guess you're right, and this is just an example of "buy the rumour and sell the news".

[runthejoules] 16/1/2017 08:59

Sounds good to me, I guess everyone's just selling the news?

EUROPEAN METALS HOLDINGS LIMITED
DRILL PROGRAMME COMPLETED AND
APPOINTMENT OF CZECH COUNTRY MANAGER
European Metals Holdings Limited (“European Metals” or “the Company”) (ASX and AIM: EMH) is pleased to announce that the planned core drillhole programme was completed on time and budget, without time loss incidents. In total 17 drillholes were drilled to a summary depth of 6081 meters. Analytical results for the CIW-10 and CIW-23 are reported in this announcement.
The Company is also pleased to announce the appointment of a highly experienced mining executive to the role of Country Manager.
Key Points:
• Analytical results for further two drillholes at Cinovec Main confirmed or exceeded the expected lithium content and mineralization widths.
• One drillhole is located at the western edge of the deposit near the contact of the mineralisation. The other drillhole is located in the central part of Cinovec Main. This hole has returned the best lithium interval to date.
• Hole CIW-23 recorded an interval of 261.1m averaging 0.50%Li2O (including high-grade intervals 23.9m@0.81%Li2O, 8m@1.05%Li2O, 4m@1.17%Li2O, 4m@1.41%Li2O, and 6m@0.95%Li2O. In addition, significant tin and tungsten mineralisation is recorded: 11 meters averaging 0.081% tungsten, 5 meters averaging 0.14% tin and 1 meter averaging 1.2% tin, and 2 meters averaging 0.088% tungsten.
• Hole CIW-10 reported an intercept of 223.9m averaging 0.43% Li2O.
• All core samples for the remaining 5 holes have been delivered to the analytical laboratory with results expected to be delivered by the end of January.
• Geological information from all 17 drillholes has been compiled into the Cinovec database and serves to update the geological model for Cinovec Main. The geologic model will be used to constrain and update the current block model. The block model will be updated in early February when all analyses will be received. The block model and resource calculation will be part of the Pre-Feasibility Study planned for release in April 2017.
• The Company welcomes the appointment of Mr Richard Pavlik to the position of General Manager of the Company’s Czech subsidiary Geomet s.r.o.
Geomet holds the licences for the Company’s 100% owned Cinovec Project in the Czech Republic. Mr Pavlik holds a Masters Degree in Mining Engineer from the Technical University of Ostrava in Czech Republic. He is the former Chief Project Manager and Advisor to the Chief Executive Officer at OKD. OKD has been a major coal producer in the Czech Republic. He has almost 30 years of relevant
industry experience in the Czech Republic. Mr Pavlik also has experience as a Project Analyst at Normandy Capital in Sydney as part of a postgraduate programme from Swinburne University.
Mr Pavlik has held previous senior positions within OKD and New World Resources as Chief Engineer, and as Head of Surveying and Geology. He has also served as the Head of the Supervisory Board of NWR Karbonia, a Polish subsidiary of New World Resources (UK) Limited. Mr Pavlik’s primary responsibilities will be to manage the in-country aspects of the Cinovec development programme, coordinate technical work and liaise with Government authorities on permitting and licensing of the project.
European Metals CEO Mr Keith Coughlan said: “I am very pleased that we have finished the drilling programme on time and without any accidents. These latest results highlight the substantial mineralisation at Cinovec and the opportunities available to target higher grade areas within these zones.
When all results are received, we will upgrade the block model and finalise the resource estimate for the Pre-feasibility study. We expect further conversion of inferred to indicated resources to occur as part of this re-modelling.
I would also like to welcome Richard Pavlik as our Country Manager. Richard has extensive experience in the Czech Mining Community and will be a huge asset in providing in-country knowledge and capability during the feasibility, permitting and development process.”
Drill Programme
The CIW-10 and CIW-23 were drilled at the western edge, and in the central part, respectively, of the Cinovec Main sector of the deposit (see Figure 1).
The current drill programme at Cinovec Main has been planned to confirm and delineate near surface lithium and tin mineralisation that would provide initial feed to the mill. Other goals are the conversion of resources from the Inferred to Indicated category, and delivery of material for metallurgical testing. So far, ten diamond core holes have been completed, and three are underway. Visual inspection and logging indicates that the geology in these holes is as expected.

[runthejoules] 16/1/2017 08:41

Nothing goes up in a straight line. But EMH's line is still much straighter than Bacanora's!

[jovi1] 16/1/2017 01:58

Not a great reaction in Asx